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How Bitcoin runs on a blockchain and how the transactions work

Photo by Hitesh Choudhary on Unsplash

When I use the word blockchain, what comes into your mind? Here’s a list of words: bitcoin, cryptocurrency, torrent, NFTs. Most probably bitcoin.

In brief, blockchain is a digital record of transactions, in which every transaction is stored in blocks, and these blocks are chained to one another in unidirection.

Blockchain is a digital record of transactions, in which every transaction is stored in blocks, and these blocks are chained to one another in unidirection.

This technology is behind the millions of transactions that happen every day in the form of Bitcoin, EtherCoin, LiteCoin, DashCoin and other cryptocurrencies. Say you have 2.5 ₿TC, in your Bitcoin wallet, and you want to trade an NFT, say a photo of DogeCoin, for 1 ₿TC, that looks like this:

DogeCoin PNG — Yahoo! Finance

In order to validate this transaction of 1 ₿TC, there is a blockchain concept called consensus. Thousands of miners around the world compete for a chance to acquire some Bitcoin, for the hard work their mining rigs do (not the miners LMAO).

One of these miners validate the transaction fastest by solving a cryptographic problem using their mining rig, which has all these GPUs to back up the whole mining process.

All the transactions are stored on the Bitcoin Network and validated by the consensus protocol.

Still have any doubts on Bitcoin and Blockchain Technology, give me a DM on my IG handle:

https://www.instagram.com/i_s.a.u.d/

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Official publication of ACM Student Chapter, Medi-Caps University. Writers/bloggers may send us their articles at “acm@medicaps.ac.in” in order to get a chance to be published by MUACM.

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Saud Hashmi

Saud Hashmi

Founder @CSCult | Polymath | Engineer

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